Where does next support lie for Nifty after cracking 1.5% today? Here's what analysts say

Sensex, Nifty cracked by 1,390 points due to selling in IT and private bank shares amid heightened uncertainty ahead of the rollout of reciprocal tariffs by the US on April 2.

Benchmark equity indices tumbled sharply on Tuesday, with the Nifty and Sensex falling up to 2 percent as investors turned cautious amid selling pressure in IT and realty stocks. The slide came ahead of the April 2 rollout of reciprocal tariffs by the US, adding to market uncertainty.

NSE Nifty declined 353.65 points or 1.5 percent to settle at 23,165.70, marking its steepest single-day loss in a month. The 30-share BSE Sensex plummeted 1,390.41 points or 1.8 percent to close at 76,024.51. Intraday, the index touched a low of 75,912.18, down 1,502.74 points or 1.94 percent.

Analysts see the present correction as a healthy pullback following a recent sharp uptrend but note that key support levels will be crucial in determining market direction.

Key Support Levels for Nifty

Market experts suggest that the Nifty has immediate support in the 23,100-23,000 range, with the 50-day Exponential Moving Average (50EMA) playing a crucial role in stabilising the index. A sustained hold above this zone could trigger a recovery, while a decisive breach may lead to further downside.

Ruchit Jain, Vice President at Motilal Oswal Financial Services, said, “The immediate support for Nifty is placed around 23,100-23,000, followed by 22,700. If these levels hold, we may see some buying interest.”

Ajit Mishra, Senior Vice President, Research, Religare Broking, observed that the Nifty had slipped below its recent consolidation range, breaching the moving average ribbon support at 23,400. “The next crucial support lies at 23,100 (20 DEMA). A breakdown below this level could further dent sentiment, while sustaining above it may lead to a bounce. Traders should remain cautious and adopt a stock-specific approach.”

Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the index is nearing its 50EMA on the daily chart, a level that could be instrumental in halting the slide. “If the index remains above 23,115, we may see a recovery. However, a breakdown below this level could deepen the correction. On the upside, 23,250 is a key resistance; a breakout above this could revive bullish momentum.”

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, viewed the current weakness as a “healthy correction” following a strong rally. “Nifty could find support around 23,000 before attempting another bounce from higher lows. Immediate resistance is placed at 23,400.”

Oil Prices Add to Market Woes

Adding to market concerns, rising crude oil prices weighed on investor sentiment. With global cues remaining uncertain, traders are expected to keep a close watch on Trump's tariff reveal on April 2.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.